Residuals for Daytime Serials

Residuals for worldwide reuse of daytime serials (sometimes called "soap operas") are based on "aggregate" minimums. Aggregate means the writers are employed within a group, often for specific functions, to work for a specified term. This minimum varies depending on when writing services are performed and the length of the program.

The residual received for reuse of an episode of a daytime serial is determined by first dividing the aggregate minimum for headwriter services and individual scripts by five; that becomes the residual base per show. Thereafter, the residuals are allocated in the following percentages:

In the event there is more than one writer in a category, the applicable percentage is divided equally among the writers in that category.

Residuals for reuse on network and syndicated television are payable in the same manner as those for other made-for-free television product.

For network television reuse, residuals are due within 30 days of the date of telecast.

For syndicated television reuse, residuals are due within four months of the date of telecast.

For programs on which the writer’s services commenced prior to May 2, 2001, residuals for foreign television reuse are paid at 35% of your residual base (payable in increments of 15%- 10%-10% when receipts reach certain levels). For programs on which the writer’s services commenced on or after May 2, 2001, in addition to the 35% payment, you will receive your share of 1.2% of foreign gross receipts when foreign gross receipts reach certain levels.

For foreign television reuse, residuals are due within 30 days of the Company’s knowledge of the foreign telecast, but no later than six months from the first foreign telecast.

Residuals for reuse in all other markets are payable in the same manner as those for other made-for-free television product.

For reuse in all other markets, residuals are due within 60 days of the end of the quarter in which the Company received the revenues.